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EVERTEC Declares Quarterly Dividend on Common Stock

SAN JUAN, Puerto Rico–(BUSINESS WIRE)–
EVERTEC, Inc. (NYSE: EVTC) (“EVERTEC” or the “Company”) today announced that its Board of Directors (the “Board”) declared a regular quarterly dividend of $0.05 per share on July 22, 2021 to be paid on September 3, 2021 to stockholders of record as of August 2, 2021.

EVERTEC’s Board anticipates declaring this dividend in future quarters on a regular basis; however, future declarations are subject to the Board’s approval and may be adjusted as business needs or market conditions change.

About Evertec

EVERTEC, Inc. (NYSE: EVTC) is a leading full-service transaction processing business in Puerto Rico, the Caribbean and Latin America, providing a broad range of merchant acquiring, payment services and business process management services. Evertec owns and operates the ATH® network, one of the leading personal identification number (“PIN”) debit networks in Latin America. In addition, the Company manages a system of electronic payment networks and offers a comprehensive suite of services for core banking, cash processing and fulfillment in Puerto Rico, that process approximately three billion transactions annually. The Company also offers technology outsourcing in all the regions it serves. Based in Puerto Rico, the Company operates in 26 Latin American countries and serves a diversified customer base of leading financial institutions, merchants, corporations and government agencies with “mission-critical” technology solutions. For more information, visit www.evertecinc.com.

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Investor Contact

(787) 773-5442

[email protected]

KEYWORDS: Caribbean Puerto Rico United States North America

INDUSTRY KEYWORDS: Technology Mobile/Wireless Finance Banking Professional Services Software Networks Hardware Data Management

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W. R. Berkley Corporation Reports Second Quarter Results

Second Quarter Net Premiums Written Grew 27.2% and Return on Equity of 15.0%

GREENWICH, Conn.–(BUSINESS WIRE)–W. R. Berkley Corporation (NYSE: WRB) today reported its second quarter 2021 results.

Summary Financial Data (Amounts in thousands, except per share data)
	Second Quarter								Six Months
	2021				2020				2021				2020
Gross premiums written	$	2,661,236			$	2,132,246			$	5,145,948			$	4,363,618
Net premiums written	2,212,181				1,739,818				4,262,219				3,585,664
Net income to common stockholders	237,238				71,260				466,763				66,842
Net income per diluted share	1.27				0.38				2.50				0.35
Operating income (1)	219,059				11,552				420,840				144,064
Operating income per diluted share	1.17				0.06				2.25				0.76
Return on equity (2)	15.0		%		4.7		%		14.8		%		2.2		%

(1) Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses) and related expenses.

(2) Return on equity represents net income expressed on an annualized basis as a percentage of beginning of year common stockholders’ equity.

Second quarter highlights included:

• Net premiums written increased 27.2%.
• The reported combined ratio was 89.7%. The current accident year combined ratio before catastrophe losses of 2.2 loss ratio points was 87.5%.
• Return on equity of 15.0%.
• Record quarterly underwriting income of $202.2 million.
• Average rate increases excluding workers’ compensation were approximately 9.7%.
• Net investment income increased 96.9% to $168.2 million.
• Total capital returned to shareholders was $112 million, consisting of $89 million of special dividends and $23 million of regular dividends.

The Company commented:

The Company reported outstanding results in the second quarter of 2021 with net premium growth in excess of 27%, a combined ratio of 89.7%, and an annualized return on equity of 15%.

Rate increases continued to outpace loss costs, further solidifying our current rate adequacy. As more products achieved or exceeded our target rate levels, our attention turned to exposure growth and business expansion. We expect this growth and rate achievement will contribute to additional underwriting profits as they are fully earned.

Our alternative investment portfolio also delivered strong performance, driven by investment funds and approximately $39 million of realized investment gains. We remain committed to a total return investment strategy and anticipate that it will continue to generate attractive returns for shareholders.

The combination of rate adequacy and an improving economy have created opportunities for profitable growth for the property casualty insurance market. Our structure, operating model and specialty product focus distinctly position us to outperform in such circumstances. We anticipate that these economic and market trends will continue to yield positive results for our Company for the foreseeable future.

Webcast Conference Call

The Company will hold its quarterly conference call with analysts and investors to discuss its earnings and other information on July 22, 2021, at 5:00 p.m. eastern time. The conference call will be webcast live on the Company’s website at https://ir.berkley.com/news-and-events/events-and-presentations/default.aspx. Please log on at least ten minutes early to register and download and install any necessary software. A replay of the webcast will be available on the Company’s website approximately two hours after the end of the conference call. Additional financial information can be found on the Company’s website at https://ir.berkley.com/investor-relations/financial-information/annual-reports/default.aspx.

About W. R. Berkley Corporation

Founded in 1967, W. R. Berkley Corporation is an insurance holding company that is among the largest commercial lines writers in the United States and operates worldwide in two segments of the property casualty business: Insurance and Reinsurance & Monoline Excess.

Forward Looking Information

This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for the year 2021 and beyond, are based upon the Company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. They are subject to various risks and uncertainties, including but not limited to: the cyclical nature of the property casualty industry; the impact of significant competition, including new entrants to the industry; the long-tail and potentially volatile nature of the insurance and reinsurance business; product demand and pricing; claims development and the process of estimating reserves; investment risks, including those of our portfolio of fixed maturity securities and investments in equity securities, including investments in financial institutions, municipal bonds, mortgage-backed securities, loans receivable, investment funds, including real estate, merger arbitrage, energy related and private equity investments; the effects of emerging claim and coverage issues; the uncertain nature of damage theories and loss amounts, including claims for cybersecurity-related risks; natural and man-made catastrophic losses, including as a result of terrorist activities; the ongoing COVID-19 pandemic; the impact of climate change, which may alter the frequency and increase the severity of catastrophe events; general economic and market activities, including inflation, interest rates, and volatility in the credit and capital markets; the impact of the conditions in the financial markets and the global economy, and the potential effect of legislative, regulatory, accounting or other initiatives taken in response, on our results and financial condition; foreign currency and political risks (including those associated with the United Kingdom’s withdrawal from the European Union, or “Brexit”) relating to our international operations; our ability to attract and retain key personnel and qualified employees; continued availability of capital and financing; the success of our new ventures or acquisitions and the availability of other opportunities; the availability of reinsurance; our retention under the Terrorism Risk Insurance Program Reauthorization Act of 2019; the ability or willingness of our reinsurers to pay reinsurance recoverables owed to us; other legislative and regulatory developments, including those related to business practices in the insurance industry; credit risk related to our policyholders, independent agents and brokers; changes in the ratings assigned to us or our insurance company subsidiaries by rating agencies; the availability of dividends from our insurance company subsidiaries; potential difficulties with technology and/or cyber security issues; the effectiveness of our controls to ensure compliance with guidelines, policies and legal and regulatory standards; and other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These risks and uncertainties could cause our actual results for the year 2021 and beyond to differ materially from those expressed in any forward-looking statement we make. Any projections of growth in our revenues would not necessarily result in commensurate levels of earnings. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Consolidated Financial Summary (Amounts in thousands, except per share data)
	Second Quarter								Six Months
	2021				2020				2021				2020
Revenues:
Net premiums written	$	2,212,181			$	1,739,818			$	4,262,219			$	3,585,664
Change in unearned premiums	(240,557)				(62,903)				(440,639)				(217,331)
Net premium earned	1,971,624				1,676,915				3,821,580				3,368,333
Net investment income	168,187				85,431				326,764				260,194
Net investment gains (losses):
Net realized and unrealized gains (losses) on investments	20,461				61,653				72,219				(81,632)
Change in allowance for credit losses on investments	3,603				16,232				(13,316)				(17,657)
Net investment gains (losses)	24,064				77,885				58,903				(99,289)
Revenues from non-insurance businesses	109,122				75,742				196,552				169,471
Insurance service fees	22,256				19,870				48,064				45,621
Other Income	833				183				1,092				2,305
Total Revenues	2,296,086				1,936,026				4,452,955				3,746,635
Expenses:
Loss and loss expenses	1,203,647				1,135,126				2,325,238				2,242,379
Other operating costs and expenses	647,705				580,840				1,263,973				1,159,173
Expenses from non-insurance businesses	106,698				76,238				192,989				170,996
Interest expense	38,096				38,373				74,747				75,105
Total expenses	1,996,146				1,830,577				3,856,947				3,647,653
Income before income tax	299,940				105,449				596,008				98,982
Income tax expense	(62,262)				(33,793)				(126,614)				(30,852)
Net Income before noncontrolling interests	237,678				71,656				469,394				68,130
Noncontrolling interest	(440)				(396)				(2,631)				(1,288)
Net income to common stockholders	$	237,238			$	71,260			$	466,763			$	66,842
Net income per share:
Basic	$	1.28			$	0.38			$	2.52			$	0.36
Diluted	$	1.27			$	0.38			$	2.50			$	0.35
Average shares outstanding (1):
Basic	185,155				185,979				185,175				188,133
Diluted	187,106				187,862				186,985				190,078

(1) Basic shares outstanding consist of the weighted average number of common shares outstanding during the period (including shares held in a grantor trust). Diluted shares outstanding consist of the weighted average number of basic and common equivalent shares outstanding during the period.

Business Segment Operating Results (Amounts in thousands, except ratios) (1)
	Second Quarter								Six Months
	2021				2020				2021				2020
Insurance:
Gross premiums written	$	2,421,846			$	1,917,702			$	4,561,859			$	3,859,511
Net premiums written	1,994,212				1,543,157				3,734,036				3,126,475
Net premiums earned	1,727,202				1,465,044				3,332,181				2,949,999
Pre-tax income	291,290				76,546				548,399				252,493
Loss ratio	61.4		%		67.0		%		61.3		%		66.1		%
Expense ratio	28.5		%		30.7		%		28.9		%		31.0		%
GAAP Combined ratio	89.9		%		97.7		%		90.2		%		97.1		%
Reinsurance & Monoline Excess:
Gross premiums written	$	239,390			$	214,544			$	584,089			$	504,107
Net premiums written	217,969				196,661				528,183				459,189
Net premiums earned	244,422				211,871				489,399				418,334
Pre-tax income	74,794				12,566				143,443				49,080
Loss ratio	58.2		%		72.2		%		57.4		%		70.3		%
Expense ratio	30.4		%		32.9		%		30.6		%		32.6		%
GAAP Combined ratio	88.6		%		105.1		%		88.0		%		102.9		%
Corporate and Eliminations:
Net investment gains (losses)	$	24,064			$	77,885			$	58,903			$	(99,289)
Interest expense	(38,096)				(38,373)				(74,747)				(75,105)
Other revenues and expenses	(52,112)				(23,175)				(79,990)				(28,197)
Pre-tax (loss) income	(66,144)				16,337				(95,834)				(202,591)
Consolidated:
Gross premiums written	$	2,661,236			$	2,132,246			$	5,145,948			$	4,363,618
Net premiums written	2,212,181				1,739,818				4,262,219				3,585,664
Net premiums earned	1,971,624				1,676,915				3,821,580				3,368,333
Pre-tax income	299,940				105,449				596,008				98,982
Loss ratio	61.0		%		67.7		%		60.8		%		66.6		%
Expense ratio	28.7		%		31.0		%		29.1		%		31.2		%
GAAP Combined ratio	89.7		%		98.7		%		89.9		%		97.8		%

(1) Loss ratio is losses and loss expenses incurred expressed as a percentage of premiums earned. Expense ratio is underwriting expenses expressed as a percentage of premiums earned. GAAP combined ratio is the sum of the loss ratio and the expense ratio.

Supplemental Information (Amounts in thousands)
	Second Quarter								Six Months
	2021				2020				2021				2020
Net premiums written:
Other liability	$	720,523			$	559,727			$	1,378,301			$	1,141,371
Short-tail lines (1)	391,778				323,164				716,830				631,053
Workers’ compensation	315,638				273,036				602,362				600,322
Commercial automobile	279,204				213,063				527,771				418,490
Professional liability	287,069				174,167				508,772				335,239
Total Insurance	1,994,212				1,543,157				3,734,036				3,126,475
Casualty reinsurance	156,216				132,927				331,081				276,388
Monoline excess	23,664				19,571				109,172				94,838
Property reinsurance	38,089				44,163				87,930				87,963
Total Reinsurance & Monoline Excess	217,969				196,661				528,183				459,189
Total	$	2,212,181			$	1,739,818			$	4,262,219			$	3,585,664
Current accident year losses from catastrophes (including COVID-19 related losses):
Insurance	$	36,803			$	114,038			$	69,632			$	170,619
Reinsurance & Monoline Excess	7,162				31,822				10,162				54,015
Total	$	43,965			$	145,860			$	79,794			$	224,634
Net Investment income:
Core portfolio (2)	$	102,961			$	111,679			$	203,528			$	244,727
Investment funds	61,311				(57,552)				100,246				(16,975)
Arbitrage trading account	3,915				31,304				22,989				32,442
Total	$	168,187			$	85,431			$	326,764			$	260,194
Net realized and unrealized gains (losses) on investments:
Net realized gains (losses) on investments	$	38,700			$	(261)			$	114,793			$	10,921
Change in unrealized (losses) gains on equity securities	(18,239)				61,914				(42,574)				(92,553)
Total	$	20,461			$	61,653			$	72,219			$	(81,632)
Other operating costs and expenses:
Policy acquisition and insurance operating expenses	$	565,733			$	519,234			$	1,111,483			$	1,051,158
Insurance service expenses	21,789				20,423				42,575				42,995
Net foreign currency gains	(1,125)				(7,382)				(6,719)				(28,923)
Debt extinguishment costs	7,903				—				11,520				—
Other costs and expenses	53,405				48,565				105,114				93,943
Total	$	647,705			$	580,840			$	1,263,973			$	1,159,173
Cash flow from operations	$	384,819			$	427,282			$	695,809			$	579,851
Reconciliation of net income to operating income:
Net income	$	237,238			$	71,260			$	466,763			$	66,842
Pre-tax investment (gains) losses, net of related expenses	(23,271)				(77,785)				(56,573)				99,807
Income tax expense (benefit)	5,092				18,077				10,650				(22,585)
Operating income after-tax (3)	$	219,059			$	11,552			$	420,840			$	144,064

(1) Short-tail lines include commercial multi-peril (non-liability), inland marine, accident and health, fidelity and surety, boiler and machinery and other lines.

(2) Core portfolio includes fixed maturity securities, equity securities, cash and cash equivalents, real estate and loans receivable.

(3) Operating income is a non-GAAP financial measure defined by the Company as net income excluding after-tax net investment gains (losses). Net investment gains (losses) are computed net of related expenses, including performance-based compensatory costs associated with realized investment gains. Management believes this measurement provides a useful indicator of trends in the Company’s underlying operations.

Selected Balance Sheet Information (Amounts in thousands, except per share data)
	June 30, 2021				December 31, 2020
Net invested assets (1)	$	22,315,029			$	21,370,503
Total assets	30,297,917				28,571,965
Reserves for losses and loss expenses	14,480,947				13,784,430
Senior notes and other debt	1,911,753				1,623,025
Subordinated debentures	1,007,293				1,102,309
Common stockholders’ equity (2)	6,578,276				6,310,802
Common stock outstanding (3)	177,414				177,825
Book value per share (4)	37.08				35.49
Tangible book value per share (4)	35.83				34.22

(1) Net invested assets include investments, cash and cash equivalents, trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases, net of related liabilities.

(2) As of June 30, 2021, reflected in common stockholders’ equity are after-tax unrealized investment gains of $223 million and unrealized currency translation losses of $345 million. As of December 31, 2020, after-tax unrealized investment gains were $290 million and unrealized currency translation losses were $352 million.

(3) During the six months ended June 30, 2021, the Company repurchased 465,063 shares of its common stock for $30 million. During the three months ended June 30, 2021, the Company did not repurchase any shares of its common stock. The number of shares of common stock outstanding excludes shares held in a grantor trust.

(4) Book value per share is total common stockholders’ equity divided by the number of common shares outstanding. Tangible book value per share is total common stockholders’ equity excluding the after-tax value of goodwill and other intangible assets divided by the number of common shares outstanding.

Investment Portfolio June 30, 2021 (Amounts in thousands, except percentages)
	Carrying Value				Percent of Total
Fixed maturity securities:
United States government and government agencies	$	502,625			2.3	%
State and municipal:
Special revenue	2,176,388				9.8	%
Local general obligation	452,710				2.0	%
State general obligation	451,588				2.0	%
Pre-refunded	248,137				1.1	%
Corporate backed	165,190				0.8	%
Total state and municipal	3,494,013				15.7	%
Mortgage-backed securities:
Agency	661,323				3.0	%
Commercial	143,586				0.6	%
Residential – Prime	117,488				0.5	%
Residential – Alt A	7,029				0.0	%
Total mortgage-backed securities	929,426				4.1	%
Asset-backed securities	4,317,863				19.4	%
Corporate:
Industrial	3,106,003				13.9	%
Financial	1,633,318				7.3	%
Utilities	423,848				1.9	%
Other	177,494				0.8	%
Total corporate	5,340,663				23.9	%
Foreign government	1,068,918				4.8	%
Total fixed maturity securities (1)	15,653,508				70.2	%
Equity securities available for sale:
Common stocks	449,500				2.0	%
Preferred stocks	193,493				0.9	%
Total equity securities available for sale	642,993				2.9	%
Cash and cash equivalents (2)	2,088,319				9.4	%
Real estate	1,811,263				8.1	%
Investment funds (3)	1,368,661				6.1	%
Arbitrage trading account	634,276				2.8	%
Loans receivable	116,009				0.5	%
Net invested assets	$	22,315,029			100.0	%

(1) Total fixed maturity securities had an average rating of AA- and an average duration of 2.4 years, including cash and cash equivalents.

(2) Cash and cash equivalents includes trading accounts receivable from brokers and clearing organizations, trading account securities sold but not yet purchased and unsettled purchases.

(3) Investment funds are net of related liabilities of $0.8 million.

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Karen A. Horvath

Vice President – External

Financial Communications

(203) 629-3000

KEYWORDS: United States North America Connecticut

INDUSTRY KEYWORDS: Insurance Infectious Diseases Finance Consulting Banking Professional Services Philanthropy Health Other Philanthropy Other Professional Services

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Posted on July 22, 2021 4:13 pm

Alpine Income Property Trust Reports Second Quarter 2021 Operating Results

DAYTONA BEACH, Fla., July 22, 2021 (GLOBE NEWSWIRE) — Alpine Income Property Trust, Inc. (NYSE: PINE) (the “Company” or “PINE”) today announced its operating results and earnings for the quarter ended June 30, 2021.

Select Highlights

• Reported Net Income per diluted share attributable to the Company of $0.03 for the quarter ended June 30, 2021.
• Reported FFO per diluted share of $0.38 for the quarter ended June 30, 2021, an increase of 31.0% from the comparable prior year period.
• Reported AFFO per diluted share of $0.39 for the quarter ended June 30, 2021, an increase of 143.8% from the comparable prior year period.
• During the second quarter of 2021, the Company acquired 18 net lease properties for total acquisition volume of $81.3 million, reflecting a weighted-average going-in cash cap rate of 7.3%.
• Entered into a new 5-year, $60.0 million unsecured term loan agreement with an initial fixed interest rate of 2.16% and a maturity date of May 2026.
• Completed inaugural follow-on underwritten public offering, issuing 3,220,000 shares of the Company’s common stock at a price per share of $17.80, generating net proceeds of $54.3 million.
• Issued 424,951 operating partnership units (“OP Units”) at an $18.85 per OP Unit value for a total value of $8.0 million in connection with the acquisition of a diversified portfolio of retail net lease properties.
• Paid a cash dividend for the second quarter of 2021 of $0.25 per share, an increase of 25.0% from the comparable prior year period.
• The Company is revising its practice of declaring a quarterly cash common stock dividend concurrent with its quarterly earnings and instead anticipates announcing its quarterly cash common stock dividend for the third quarter of 2021 and for future periods at the end of the second month of the respective quarter.

Quarterly Operating Results Highlights

The table below provides a summary of the Company’s operating results for the quarter ended June 30, 2021 (in thousands, except per share data):

		Three Months Ended June 30, 2021			Three Months Ended June 30, 2020			Variance to Comparable Period in the Prior Year
Total Revenues		$	6,597		$	4,591		$	2,006	43.7	%
Net Income		$	346		$	279		$	67	24.0	%
Net Income Attributable to PINE		$	304		$	240		$	64	26.7	%
Net Income Attributable to PINE per diluted share		$	0.03		$	0.03		$	—	—	%
FFO (1)		$	3,809		$	2,565		$	1,244	48.5	%
FFO per diluted share (1)		$	0.38		$	0.29		$	0.09	31.0	%
AFFO (1)		$	3,892		$	1,369		$	2,523	184.3	%
AFFO per diluted share (1)		$	0.39		$	0.16		$	0.23	143.8	%
Dividends Declared and Paid, per share		$	0.25		$	0.20		$	0.05	25.0	%

⁽¹⁾ See the “Non-GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of Net Income to non-GAAP financial measures, including FFO, FFO per diluted share, AFFO and AFFO per diluted share.

Year-to-Date Operating Results Highlights

The table below provides a summary of the Company’s operating results for the six months ended June 30, 2021 (in thousands, except per share data):

		Six Months Ended June 30, 2021			Six Months Ended June 30, 2020			Variance to Comparable Period in the Prior Year
Total Revenues		$	12,487		$	8,762		$	3,725	42.5	%
Net Income		$	857		$	294		$	563	191.5	%
Net Income Attributable to PINE		$	744		$	253		$	491	194.1	%
Net Income Attributable to PINE per diluted share		$	0.08		$	0.03		$	0.05	166.7	%
FFO (1)		$	7,463		$	4,603		$	2,860	62.1	%
FFO per diluted share (1)		$	0.79		$	0.51		$	0.28	54.9	%
AFFO (1)		$	7,742		$	3,176		$	4,566	143.8	%
AFFO per diluted share (1)		$	0.82		$	0.35		$	0.47	134.3	%
Dividends Declared and Paid, per share		$	0.49		$	0.40		$	0.09	22.5	%

⁽¹⁾ See the “Non-GAAP Financial Measures” section and tables at the end of this press release for a discussion and reconciliation of Net Income to non-GAAP financial measures, including FFO, FFO per diluted share, AFFO and AFFO per diluted share.

CEO Comments

“I am very pleased with our Company’s performance during the second quarter as we were able to execute across all facets of our business and achieve a number of milestones for our organization,” said John P. Albright, President and Chief Executive Officer of Alpine Income Property Trust. “Our high-quality, 100% occupied portfolio continued its strong performance throughout the quarter, and we were very active in the acquisition market, with the second quarter representing the largest quarter of acquisition volume in the history of the Company. We strengthened our balance sheet with the completion of our first follow-on equity offering since our IPO, and we further diversified our capital sources with our inaugural OP Unit issuance, which served as an efficient funding source for a high-quality, well-diversified retail portfolio acquisition. We continue to make good progress on the sale of our office properties, where we have received multiple offers on each asset, and we are now continuing to work through the sale process. With excellent momentum heading into the back half of the year, we are excited about the growth prospects of our company and we remain committed to building a best-in-class organization for our shareholders.”

Acquisitions

During the three months ended June 30, 2021, the Company acquired 18 high-quality net lease properties for total acquisition volume of $81.3 million, reflecting a weighted-average going-in cash cap rate of 7.3%. As of the acquisition date, the properties had a weighted-average remaining lease term of 7.7 years, were leased to tenants operating in the home improvement, grocery, convenience store, auto parts, dollar store, off-price retail, sporting goods, farm & rural supply and quick service restaurant sectors, and were located in 13 different states. Approximately 49% of annualized base rents acquired are generated from a tenant or the parent of a tenant with an investment grade credit rating.

During the six months ended June 30, 2021, the Company acquired 23 net lease properties for total acquisition volume of $103.2 million, reflecting a weighted-average going-in cash cap rate of 7.5%. As of the acquisition date, the properties had a weighted-average remaining lease term of 8.8 years and were located in 15 different states. Approximately 41% of annualized base rents acquired are generated from a tenant or the parent of a tenant with an investment grade credit rating.

Income Property Portfolio

The Company’s portfolio consisted of the following as of June 30, 2021:

Number of Properties	71
Square Feet	2.3 million
Weighted-Average Remaining Lease Term	8.0 years
States where Properties are Located	22
Occupancy	100%
% of Annualized Base Rent attributable to Retail Tenants (1)	80%
% of Annualized Base Rent attributable to Office Tenants (1)	20%
% of Annualized Base Rent subject to Rent Escalations (1)	45%
% of Annualized Base Rent attributable to Investment Grade Rated Tenants (1)(2)	45%
% of Annualized Base Rent attributable to Credit Rated Tenants (1)(3)	81%

Any differences a result of rounding.

⁽¹⁾ Annualized Base Rent (“ABR”) represents the annualized in-place base rent required by the tenant’s lease. ABR is a non-GAAP financial measure. We believe this non-GAAP financial measure is useful to investors because it is a widely accepted industry measure used by analysts and investors to compare the real estate portfolios and operating performance of REITs.

⁽²⁾ The Company defines an Investment Grade Rated tenant as a tenant or the parent of a tenant with a credit rating from Moody’s Investors Service, S&P Global Ratings, Fitch Ratings or the National Associated of Insurance Commissioners of Baa3, BBB-, NAIC-2 or higher.

^(
3
) The Company defines a Credit Rated Tenant as a tenant or the parent of a tenant with a credit rating from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the National Association of Insurance Commissioners.

The Company’s portfolio included the following top tenants as of June 30, 2021:

Tenant	Credit Rating (1)		% of Annualized Base Rent
Wells Fargo	A+		11%
Hilton Grand Vacations	BB		9%
Hobby Lobby	N/A		7%
Dollar General	BBB		7%
Walgreens	BBB		5%
At Home	B		5%
Walmart	AA		5%
LA Fitness	CCC+		3%
Lowe’s	BBB+		3%
Burlington	BB+		3%
Total			58 %

Any differences a result of rounding.

⁽¹⁾ Credit rating is from S&P Global Ratings, Moody’s Investors Service, Fitch Ratings or the National Association of Insurance Commissioners, as applicable, as of June 30, 2021.

The Company’s portfolio consisted of the following industries as of June 30, 2021:

Industry			% of Annualized Base Rent
General Merchandise			14%
Financial Services (Office)			11%
Home Furnishings			10%
Hospitality (Office)			9%
Dollar Stores			7%
Grocery			7%
Pharmacy			7%
Entertainment			6%
Sporting Goods			6%
Convenience Store			4%
Health & Fitness			3%
Home Improvement			3%
Off-Price Retail			3%
Consumer Electronics			3%
Automotive Parts			2%
Quick Service Restaurant			1%
Casual Dining			1%
Automotive Service			1%
Farm & Rural Supply			1%
Other (1)			1%
Total	23 Industries		100 %

Any differences a result of rounding.
⁽¹⁾ Includes four industries collectively representing 1% of the Company’s ABR as of June 30, 2021.

The Company’s portfolio included properties in the following states as of June 30, 2021:

State			% of Annualized Base Rent
Florida			16%
Texas			13%
Oregon			11%
North Carolina			10%
Arizona			7%
Georgia			6%
Michigan			5%
Massachusetts			4%
Oklahoma			4%
Ohio			4%
Washington			3%
New York			3%
Nevada			2%
Wisconsin			2%
South Carolina			2%
New Mexico			2%
Alabama			2%
Maryland			2%
Kentucky			1%
Maine			1%
Indiana			1%
Pennsylvania			<1%
Total	22 States		100 %

Any differences a result of rounding.

Capital Markets and Balance Sheet

During the three months ended June 30, 2021, the Company completed the following notable capital markets transactions:

• On May 21, 2021, the Company executed a 5-year, $60.0 million unsecured term loan (the “2026 Term Loan”). The 2026 Term Loan will mature in May 2026 and includes an accordion option that allows the Company to request additional lender commitments up to a total of $160.0 million.
• On June 10, 2021, the Company completed its inaugural follow-on underwritten public offering of 3,220,000 shares of common stock, which included the underwriters’ full exercise of their option to purchase additional shares. Total net proceeds were $54.3 million after deducting the underwriting discount and expenses.
• On June 30, 2021, the Company issued 424,951 OP Units at an $18.85 per OP Unit value for a total value of $8.0 million in connection with the acquisition of a diversified portfolio of retail net lease properties.
• On June 30, 2021, in connection with the acquisition of six properties from CTO Realty Growth, Inc., a publicly traded real estate investment trust and the sole member of the Company’s external manager, the Company assumed an existing $30.0 million secured mortgage, which bears a fixed interest rate of 4.33%. The mortgage note matures in October 2034 and is prepayable without penalty beginning in October 2024.
• During the second quarter of 2021, the Company issued 176,028 common shares under its ATM offering program at a weighted-average gross price of $18.06 per share, for total net proceeds of $3.1 million. Year to date, the Company has issued 610,229 common shares under its ATM offering program at a weighted-average gross price of $18.19 per share, for total net proceeds of $10.9 million.

“We are pleased with our ability to access the debt and equity capital markets at attractive terms and we appreciate the support shown by our investors and our bank group in our investment strategy and management team,” commented Matthew M. Partridge, Senior Vice President, Chief Financial Officer and Treasurer of Alpine Income Property Trust. “The successful execution of our inaugural follow-on equity offering, OP Unit issuance, and recently completed term loan further strengthens our balance sheet and provides us with ample liquidity to continue our strong growth trajectory.”

The following table provides a summary of the Company’s long-term debt as of June 30, 2021:

Component of Long-Term Debt		Principal			Interest Rate			Maturity Date
Revolving Credit Facility (1)		$	50.0 million		48 bps + [1.35% – 1.95%]			November 2023
2026 Term Loan (2)		$	60.0 million		81 bps + [1.35% – 1.95%]			May 2026
Mortgage Note Payable – CMBS Portfolio		$	30.0 million		4.33%			October 2034
Mortgage Notes Payable		$	1.6 million		N/A			July 2021(3)
Total Debt/Weighted-Average Rate		$	141.6 million		2.50%

⁽¹⁾ Effective April 30, 2020, the Company utilized an interest rate swap to achieve a fixed interest rate of 0.48% plus the applicable spread on $50.0 million of the outstanding balance on the revolving credit facility.

⁽²⁾ Effective May 21, 2021, the Company utilized an interest rate swap to achieve a weighted average fixed interest rate of 0.81% plus the applicable spread on the $60.0 million term loan balance.

^(
3
) Mortgage notes payable assumed in connection with the acquisition of two net lease properties during the three months ended June 30, 2021 which was repaid on July 1, 2021.

As of June 30, 2021, the Company held an 87.3% interest in Alpine Income Property OP, LP, the Company’s operating partnership (the “Operating Partnership” or “OP”). As of June 30, 2021, there were 1,648,805 OP Units held by third parties outstanding and 11,296,023 shares of the Company’s common stock outstanding, for total outstanding common stock and OP Units held by third parties of 12,944,828.

As of June 30, 2021, the Company’s net debt to Pro Forma EBITDA was 5.7 times and as defined in the Company’s credit agreement, the Company’s fixed charge coverage ratio was 7.9 times. As of June 30, 2021, the Company’s net debt to total enterprise value was 35%. The Company calculates total enterprise value as the sum of net debt and the market value of the Company’s outstanding common shares and OP Units, as if the OP Units have been converted to common shares.

Dividend

On April 21, 2021, the Company announced a cash dividend for the second quarter of 2021 of $0.25 per share, payable on June 30, 2021 to stockholders of record as of the close of business on June 21, 2021. The 2021 second quarter cash dividend represented a 4.2% increase over the Company’s previous quarterly dividend and a payout ratio of 66% and 64% of the Company’s 2021 second quarter FFO and AFFO per diluted share, respectively.

The Company is revising its practice of declaring a quarterly cash common stock dividend concurrent with its quarterly earnings and instead anticipates announcing its quarterly cash common stock dividend for the third quarter of 2021 and for future periods at the end of the second month of the respective quarter.

2021 Guidance

The Company has revised its outlook for 2021 to take into account the Company’s second quarter performance and the expected impact of the Company’s various investment activities and capital markets transactions, including the additional common share and OP Unit issuances. The Company’s outlook for 2021 assumes continued improvement in economic activity, stable or positive business trends related to each of our tenants and other significant assumptions, including the sale of the office properties leased to Hilton Grand Vacations and Wells Fargo.

The Company’s revised outlook for 2021 is as follows:

		Guidance for FY 2021
FFO Per Diluted Share		$1.35 – $1.45
AFFO Per Diluted Share		$1.38 – $1.48

Second Quarter 2021 Earnings Conference Call & Webcast

The Company will host a conference call to present its operating results for the quarter ended June 30, 2021 tomorrow, Friday, July 23, 2021, at 9:00 AM ET. Stockholders and interested parties may access the earnings call via teleconference or webcast:

Teleconference: USA (Toll Free)	1-888-317-6003
International:	1-412-317-6061
Canada (Toll Free):	1-855-669-9657

Please dial in at least fifteen minutes prior to the scheduled start time and use the code 5254193 when prompted.

A webcast of the call can be accessed at: https://services.choruscall.com/links/pine210723.html. To access the webcast, log on to the web address noted above or go to http://www.alpinereit.com and log in at the investor relations section of the website.

About Alpine Income Property Trust, Inc.

Alpine Income Property Trust, Inc. (NYSE: PINE) is a publicly traded real estate investment trust that acquires, owns and operates a portfolio of high-quality net leased commercial income properties.

We encourage you to review our most recent investor presentation which is available on our website at http://www.alpinereit.com.

Safe Harbor

This press release may contain “forward-looking statements.” Forward-looking statements include statements that may be identified by words such as “could,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking statements are based on the Company’s current expectations and assumptions regarding capital market conditions, the Company’s business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, the Company’s actual results may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include general business and economic conditions, continued volatility and uncertainty in the credit markets and broader financial markets, risks inherent in the real estate business, including tenant defaults, potential liability relating to environmental matters, illiquidity of real estate investments and potential damages from natural disasters, the impact of the COVID-19 Pandemic on the Company’s business and the business of its tenants and the impact on the U.S. economy and market conditions generally, other factors affecting the Company’s business or the business of its tenants that are beyond the control of the Company or its tenants, and the factors set forth under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and other risks and uncertainties discussed from time to time in the Company’s filings with the U.S. Securities and Exchange Commission. Any forward-looking statement made in this press release speaks only as of the date on which it is made. The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures

Our reported results are presented in accordance with GAAP. We also disclose Funds from Operations (“FFO”), Adjusted Funds From Operations (“AFFO”) and Pro Forma Earnings Before Interest, Taxes, Depreciation and Amortization (“Pro Forma EBITDA”), all of which are non-GAAP financial measures. We believe these non-GAAP financial measures are useful to investors because they are widely accepted industry measures used by analysts and investors to compare the operating performance of REITs.

FFO, AFFO and Pro Forma EBITDA do not represent cash generated from operating activities and are not necessarily indicative of cash available to fund cash requirements; accordingly, they should not be considered alternatives to net income as a performance measure or cash flows from operations as reported on our statement of cash flows as a liquidity measure and should be considered in addition to, and not in lieu of, GAAP financial measures.

We compute FFO in accordance with the definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT. NAREIT defines FFO as GAAP net income or loss adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate related depreciation and amortization, including the pro rata share of such adjustments of unconsolidated subsidiaries. To derive AFFO, we modify the NAREIT computation of FFO to include other adjustments to GAAP net income related to non-cash revenues and expenses such as straight-line rental revenue, amortization of deferred financing costs, amortization of capitalized lease incentives and above- and below-market lease related intangibles, and non-cash compensation. Such items may cause short-term fluctuations in net income but have no impact on operating cash flows or long-term operating performance. We use AFFO as one measure of our performance when we formulate corporate goals. To derive Pro Forma EBITDA, GAAP net income or loss is adjusted to exclude extraordinary items (as defined by GAAP), net gain or loss from sales of depreciable real estate assets, impairment write-downs associated with depreciable real estate assets and real estate related depreciation and amortization, including the pro rata share of such adjustments of unconsolidated subsidiaries, non-cash revenues and expenses such as straight-line rental revenue, amortization of deferred financing costs, amortization of capitalized lease incentives and above- and below-market lease related intangibles, and non-cash compensation. Cash interest expense is also excluded, and GAAP net income or loss is adjusted for the annualized impact of acquisitions, dispositions and other similar activities.

FFO is used by management, investors and analysts to facilitate meaningful comparisons of operating performance between periods and among our peers primarily because it excludes the effect of real estate depreciation and amortization and net gains on sales, which are based on historical costs and implicitly assume that the value of real estate diminishes predictably over time, rather than fluctuating based on existing market conditions. We believe that AFFO is an additional useful supplemental measure for investors to consider because it will help them to better assess our operating performance without the distortions created by other non-cash revenues or expenses. Pro Forma We believe that Pro Forma EBITDA is an additional useful supplemental measure for investors to consider as it allows for a better assessment of our operating performance without the distortions created by other non-cash revenues, expenses or the effects of the Company’s capital structure. FFO, AFFO and Pro Forma EBITDA may not be comparable to similarly titled measures employed by other companies.

Alpine Income Property Trust, Inc.

Consolidated Balance Sheets

(In thousands, except share and per share data) 

	As of
	(Unaudited) June 30, 2021				December 31, 2020
ASSETS
Real Estate:
Land, at cost	$	115,410			$	83,210
Building and Improvements, at cost		199,279				142,679
Total Real Estate, at cost		314,689				225,889
Less, Accumulated Depreciation		(10,577	)			(6,550	)
Real Estate—Net		304,112				219,339
Assets Held for Sale		3,082				—
Cash and Cash Equivalents		6,294				1,894
Restricted Cash		2,190				—
Intangible Lease Assets—Net		47,805				36,881
Straight-Line Rent Adjustment		1,925				2,045
Other Assets		2,089				2,081
Total Assets	$	367,497			$	262,240
LIABILITIES AND EQUITY
Liabilities:
Accounts Payable, Accrued Expenses, and Other Liabilities	$	2,422			$	1,984
Prepaid Rent and Deferred Revenue		1,175				1,055
Intangible Lease Liabilities—Net		4,654				3,299
Long-Term Debt		140,806				106,809
Total Liabilities		149,057				113,147
Commitments and Contingencies
Equity:
Preferred Stock, $0.01 par value per share, 100 million shares authorized, no shares issued and outstanding as of June 30, 2021 and December 31, 2020		—				—
Common Stock, $0.01 par value per share, 500 million shares authorized, 11,296,023 shares issued and outstanding as of June 30, 2021 and 7,458,755 shares issued and outstanding as of December 31, 2020		113				75
Additional Paid-in Capital		197,978				132,878
Dividends in Excess of Net Income		(9,689	)			(5,713	)
Accumulated Other Comprehensive Income (Loss)		180				(481	)
Stockholders’ Equity		188,582				126,759
Noncontrolling Interest		29,858				22,334
Total Equity		218,440				149,093
Total Liabilities and Equity	$	367,497			$	262,240

Alpine Income Property Trust, Inc.

Consolidated Statements of Operations

(Unaudited)
 (In thousands, except share, per share and dividend data) 

	Three Months Ended								Six Months Ended
	June 30, 2021				June 30, 2020				June 30, 2021				June 30, 2020
Revenues:
Lease Income	$	6,597			$	4,591			$	12,487			$	8,762
Total Revenues		6,597				4,591				12,487				8,762
Operating Expenses:
Real Estate Expenses		824				550				1,475				1,150
General and Administrative Expenses		1,286				1,132				2,316				2,416
Depreciation and Amortization		3,463				2,286				6,606				4,309
Total Operating Expenses		5,573				3,968				10,397				7,875
Net Income from Operations		1,024				623				2,090				887
Interest Expense		678				344				1,233				593
Net Income		346				279				857				294
Less: Net Income Attributable to Noncontrolling Interest		(42	)			(39	)			(113	)			(41	)
Net Income Attributable to Alpine Income Property Trust, Inc.	$	304			$	240			$	744			$	253
Per Common Share Data:
Net Income Attributable to Alpine Income Property Trust, Inc.
Basic	$	0.03			$	0.03			$	0.09			$	0.03
Diluted	$	0.03			$	0.03			$	0.08			$	0.03
Weighted Average Number of Common Shares:
Basic	8,853,259			7,544,991					8,212,902				7,721,835
Diluted (1)	10,081,783				8,768,845				9,439,104				8,945,689
Dividends Declared and Paid	$	0.25			$	0.20			$	0.49			$	0.40

⁽¹⁾ Includes the weighted average impact of 1,648,805 shares underlying OP units including (i) 1,223,854 shares underlying OP Units issued to CTO Realty Growth, Inc. in connection with our formation transactions and (ii) 424,951 shares underlying OP Units issued to an unrelated third party in connection with the acquisition of nine net lease properties during the three months ended June 30, 2021.

Alpine Income Property Trust, Inc.

Non-GAAP Financial Measures

Funds From Operations and Adjusted Funds From Operations

(Unaudited)
(In thousands, except per share data) 

	Three Months Ended								Six Months Ended
	June 30, 2021				June 30, 2020				June 30, 2021				June 30, 2020
Net Income	$	346			$	279			$	857			$	294
Depreciation and Amortization		3,463				2,286				6,606				4,309
Funds from Operations	$	3,809			$	2,565			$	7,463			$	4,603
Adjustments:
Straight-Line Rent Adjustment		(117	)			(614	)			(264	)			(937	)
COVID-19 Rent Repayments       (Deferrals), Net		114				(625	)			385				(625	)
Non-Cash Compensation		79				68				152				135
Amortization of Deferred Financing Costs to Interest Expense		84				44				149				88
Amortization of Intangible Assets and Liabilities to Lease Income		(50	)			(29	)			(91	)			(48	)
Accretion of Tenant Contribution		(5	)			(7	)			(11	)			(7	)
Recurring Capital Expenditures		(22	)			(33	)			(41	)			(33	)
Adjusted Funds from Operations	$	3,892			$	1,369			$	7,742			$	3,176
FFO per diluted share	$	0.38			$	0.29			$	0.79			$	0.51
AFFO per diluted share	$	0.39			$	0.16			$	0.82			$	0.35

Alpine Income Property Trust, Inc.

Non-GAAP Financial Measures

Reconciliation of Net Debt to Pro Forma EBITDA

(Unaudited)
(Dollars in thousands) 

	Three Months Ended
	June 30, 2021
Net Income	$	346
Adjustments:
Depreciation and Amortization		3,463
Straight-Line Rent Adjustment		(117	)
Non-Cash Compensation		79
Amortization of Deferred Financing Costs to Interest Expense		84
Amortization of Intangible Assets and Liabilities to Lease Income		(50	)
Accretion of Tenant Contribution		(5	)
Interest Expense, net of Deferred Financing Costs Amortization		594
EBITDA	$	4,394
Annualized EBITDA	$	17,576
Pro Forma Annualized Impact of Current Quarter Acquisitions and Dispositions, net (1)		5,727
Pro Forma EBITDA	$	23,303
Total Long-Term Debt		140,806
Financing Costs, net of accumulated amortization		816
Cash		(6,294	)
Restricted Cash		(2,190	)
Net Debt	$	133,138
Net Debt to Pro Forma EBITDA		5.7x

⁽¹⁾ Reflects the pro forma annualized impact on Annualized EBITDA of the Company’s acquisition and disposition activity during the three months ended June 30, 2021.

Contact:

Matthew M. Partridge Senior Vice President, Chief Financial Officer & Treasurer (386) 944-5643 [email protected]